Africa’s emerging youths prefer investment to consumption

By  Omoh Gabriel

Barclays Africa has launched a report that shows Africans equate prosperity to achieving financial freedom, as Africa continues to experience growth ahead of other developing economies. Barclays Africa is among the leading banks on the continent with a presence in 14 African countries.

The Barclays Africa Prosper Report captures what ‘prosper’ means to Africans in 11 of those countries. The survey, which was conducted online, surveyed over 7 000 respondents from South Africa, Zambia, Botswana, Kenya, Ghana, Mozambique, Seychelles, Mauritius, Tanzania, Uganda and Zimbabwe.

Seventy-eight percent of the respondents were between 18 and 35 years of age, representing a significant portion of the ‘youth bulge’ – the future drivers of the African economy. The youth bulge is a common phenomenon in many developing countries where a large share of the population is comprised of children and young adults thanks to a decrease in infant mortality and steady levels of fertility.

The Barclays Africa Prosper Report identifies that Africa’s youth, given the right tools, are set to become the drivers of economic prosperity.

* If given $100 to help them prosper, 49 per cent of respondents would invest it.

* Almost a third would buy a computer (30 percent) and books (24 percent) to help them prosper.

* While lack of finances is a major barrier to prosperity (66 percent), this is also the easiest aspect of their life to change (37 percent).

* Nearly 50 percent of respondents would most likely consult a bank to obtain financial prosperity. Only ten percent said they would consult a family member.

Bobby Malabie, Group Executive of Marketing Communications, Citizenship and Public Affairs at Barclays Africa said, “The Barclays Africa Prosper Report shows that people work hard for their money and want their money to work hard for them. What is particularly encouraging is that when questioned further, the youth of Africa would rather invest their money to fund further education than to spend it on flashy consumer goods.

“Investment, education and savings are seen by Africans as the main drivers of prosperity to open the doors to economic growth. It is also clear that Africa’s emerging youth presents the continent with an unprecedented opportunity to deepen our human capital, and with the right tools, tomorrow’s decision makers can unlock Africa’s potential.” Providing an independent analysis of the research, Professor Monde Makiwane of the Human Sciences Research Council (HSRC) says: “A decrease in mortality rates coupled with the youth’s connectivity to a global community which is increasingly aided by technology.”

- Culled from: http://www.vanguardngr.com